In this paper we estimate, for the 1989-93 period in Belgium, the effect of vocational classroom training on therate of … transition out of unemployment. We show that rationing of the demand for training increases theunemployment duration of non … training capacities. During participation, thetransition rate decreases by 27%. Afterwards it increases by 62%. Making training …

Standard economic theory predicts that firms will not invest in general training and will underinvest in specific … training. Empirical evidence, however, indicates that firms do invest in general training of their workers. Evidence from … laboratory experiments points to less underinvestment in specific training than theory predicts. We propose a simple model in …